The Massachusetts realtors report on September sales. "The Massachusetts Association of REALTORS reported today that the number of single-family homes and condominiums sold in September were down over 13 percent compared to the same time last year while prices continue to remain steady. Despite the drop in sales in September, the third quarter was still the fourth most active third quarter since 1990."

"'Unfortunately, September wasn’t able to continue the year-to-year sales gains experienced in both July and August,' said MAR President Doug Azarian. 'It is definitely possible that all the reports about foreclosures, lack of financing, and the like have taken their toll and the result is that buyers are waiting on the sidelines.'"

"On a month-to-month basis, there was a 33.9 percent decrease compared to the 4,700 homes sold this past August. While a double-digit percentage decrease is typical from August to September, this was the biggest drop in over 10 years."

"The inventory of residential properties...at the current sales pace represents approximately 12.1 months of supply. The average months of supply went up from the 7.6 months of supply seen in August, 2007."

The Boston Globe from Massachusetts. "The summer mortgage crisis slammed the Massachusetts housing market in September, causing sales to plunge 18.7 percent."

"Single-family home sales were 3,735 last month, down from 4,593 in September 2006, according to a monthly report from Warren Group. That was the largest decline in 12 months, when sales slid 22 percent below the previous year."

"Realtors and analysts said prices are not dropping in line with sale totals because there are fewer and fewer homes on the market. Rather than selling for much lower prices, homeowners are simply not listing properties or are waiting out the downturn."

"'Inventory's down because there's so much doom and gloom being projected in the newspapers it's causing people to withhold a potential sale,' said Daniel Meegan, an agent in Salem and Beverly. Homeowners are afraid 'they won't be able to get the value they want out of their house,' he said."

"Terry Egan, editor in chief of Banker & Tradesman and other Warren publications, called September's sales drop 'significant.' 'That's reflective of what's happening in the mortgage market,' he said, referring to a credit crunch in July and August."

The Boston Herald. "Experts said a sudden spike in 'jumbo' mortgage rates - those on loans larger than $417,000 - hit housing hard in September."

"John Brodrick, a past president of the Massachusetts Mortgage Association, said jumbo rates ran about 1.5 percentage points higher than non-jumbo ones last month. That’s far above the normal spread of about 0.38 percent."

"Greater Boston home foreclosures will create some $85 million in economic losses over the next two years through depressed property values, unpaid taxes and other hidden costs, a new study finds."

"Kevin Cuff of the Massachusetts Mortgage Bankers Association said lenders are open to increased modifications 'where appropriate...but there are cases where (a borrower’s finances are so bad) that nothing can be done.'"

"With home sales and prices dropping, it may seem like an odd time to be launching a residential real estate company. But Jon Gollinger, a veteran Boston-area real estate executive, believes he has found a sweet spot in a down market. The firm will offer a sales method steadily gaining popularity in the weak market - auctions."

"The firm’s current focus is on so-called 'accelerated marketing' programs, culminating in an auction of a set of condos or homes. It is an area where Gollinger has already made a splash, having orchestrated an auction of dozens of condos last year in downtown Boston at the Folio project."

"'In almost every other market in the country anyone who has a new project coming out of the ground has got into a tough situation,' Gollinger said."

"In several markets across the country, there are now backlogs of unsold condos and homes, creating financial headaches for developers and banks. Gollinger’s pitch: He will get those units sold, maybe not at the original dream price, but at a number the builders and their financial backers can live with."

The Enterprise from Massachusetts. "Becky Demling put her Norlen Park home up for sale earlier this month, but despite a few nibbles, she is still waiting for a buyer to bite. 'People are coming to see it, we just have to be willing to go well below market value,' says Demling."

"The four-bedroom, 1.5 bath, Cape-style home...is now listed for $349,900, well below its $368,900 assessed value."

The New York Post. "A sharp jump in the number of personal bankruptcy filings could signal growing economic uncertainty for the city. Crain's New York Business reported yesterday that Chapter 7 and Chapter 13 filings in the five boroughs rose 69%, to 10,541, in the past year."

"'New York has not been immune to the housing downturn,' an economist at the Fiscal Policy Institute, James Parrott, said, noting that an inability to pay high-interest loans and mortgages often leads people to declare bankruptcy."

The Journal News from New York. "The sense that the market is changing is affecting buyer psychology, said Matt Mazzamurro, broker in Ossining. 'Those with money are waiting for the bottom to fall further,' he said."

"Some homeowners have struggled to sell in the current market. Henry and Elizabeth Brauchler put their three-bedroom Yorktown house on the market in the spring of 2006 for $699,000. The house has been off and on the market since then, and is currently listed at $519,900."

"'I certainly won't give it away,' said Henry Brauchler. He said he thinks the increase in subprime mortgage lending has resulted in more foreclosures in the market."

"'There are some homeowners that have gotten money they shouldn't have gotten, and that hurt us,' he said."

"In Putnam, Robert and Brenda Tracy decided last year to refinance their house in Kent so they could afford a larger house in Carmel. They bought the Carmel house in November, expecting they could sell the Kent house in a few months, 'not knowing the market would take such a downturn,' she said."

"The Kent house, listed at $619,000 in the spring, remains unsold at an asking price of $499,900. Part of the problem is the trouble that potential buyers in the county are having in selling their own houses to trade up, Tracy said. High taxes and the reduced ease in obtaining mortgage money also are factors, she added."

"'We just take it day by day and hope one good buyer can come along,' she said."

From CBS 3 in Pennsylvania. "The real estate bubble has lost some of its air this year, but that doesn't mean home sellers have to lose all hope. 3 This Old City condo has high ceilings, a chef's kitchen and a private rooftop deck with a killer view."

"Two years ago, it would have been snapped up in a day, but as the owner puts it on the market now, what can he expect?"

"'We're seeing things sit on the market longer than they have been,' said real estate agent Chelsea Hardesty."

"Real estate used to be all about, location, location, location, well maybe, but in a cool housing market, 'I think the most important thing is price,' Hardesty said."

"Setting a realistic price is critical, especially in this buyers market. Not only do you want to attract the most potential buyers, but mortgage companies are not giving away money like they used to. If the house doesn't appraise for the sale price, you could lose your buyer."

The Record from New Jersey. "New Jersey builders have put on the brakes, cutting housing starts by 21 percent this year, the National Association of Home Builders said Tuesday. The builders are responding to a drop in demand from buyers."

"'The real estate market is in a severe and continuing contraction,' said Patrick O'Keefe, president of the New Jersey Builders Association."

"The housing downturn follows a boom that saw New Jersey house prices rise by about 85 percent in the first half of this decade. That far outstripped the rise in household incomes, O'Keefe said, 'leading to an affordability problem that inevitably led to a contraction.'"

"According to the NAHB State Starts Forecast, about 24,800 housing units will be started this year in New Jersey -- down significantly from the 31,400 housing starts of 2006 and the 35,000 of 2005. And builders are expected to keep production low in 2008, with about 24,200 housing starts."

"'People still want to buy homes; all you have to do is hit the right price,' said Doug Fenichel, a spokesman for Red Bank-based Hovnanian Enterprises Inc., the state's largest home builder."

Money Magazine on Maryland. "The last time Sabrina Williams sold a home herself, she received a solid offer the first week, got her asking price of $319,000. Snap, just like that."

"So when Williams and her husband recently decided to sell the three-bedroom townhouse they own in Germantown, Md., she figured she knew just what they had to do to find a suitable buyer."

"'We'd fluff up the towels, clean the carpets and buy a new chandelier,' she says. 'And in return we'd save thousands.'"

"But while that simple approach worked well when the couple sold their first home in 2004, that was then (then being one of the hottest real estate markets in decades) and this is now (when inventories of unsold homes are at their highest levels in nearly 15 years)."

"In the two months since they put their townhouse on the market, Williams and Cunningham haven't gotten even one bid from a prospective buyer, and they're already beginning to consider other options."

"'We can always knock down the price,' Williams says. Or maybe, she muses, they'll postpone selling until spring: 'It's not like we're in a hurry.'"

The Daily Press from Virginia. "Builders scaled back on new housing permits by 16.9 percent the first eight months of this year compared with the same period of 2006, Old Dominion University economics researchers said."

"The declines reflect builders' recognition that inventory is reaching an all-time high — almost 200 percent more than in 2005, said Vinod Agarwal, an ODU economics professor. ODU Researchers released their quarterly forecast of the Hampton Roads regional economy."

"'Builders understand the market conditions, and they are reacting the way you would expect them to react,' Agarwal said. And although sellers of existing homes have been slow to ratchet down prices, Agarwal said next year could see in Hampton Roads home prices fall by five percent or more."

"'It's going to take some time for sellers to realize what's happening in the marketplace,' Agarwal said."

"What's happening is this: In 2004, through Sept. 30, there were 3,672 homes listed for sale. Through the same period this year, there were 14,426 active listings. The number of days on the market has risen to 66 days from 29 days."

"'It's obvious the market is flooded,' Agarwal said."